A new cold front has come in the last week of this winter to the central regions of Argentina bring temperatures below 10 degree Celsius (50 degrees F) or even five degrees (41 F) in some cases, but these temperatures would go up again by the weekend. The forecast from the Buenos Aires Cereal Exchange also says that rains would return to the main producing rains after the scarcity of drops in the middle of the coming week. More precipitation would be seen in the Northern parts of the country. Argentina is about to start planting of corn and soybeans.
Brazil’s National Supply Company (Conab) has released a new report this Tuesday (09.12) and confirmed a record grain production of 238.7 million metric tons in the 2016/2017 season. The total output is 27.9 percent or 51 million metric tons higher than last year due to more favorable weather that generated higher yields.
The first crop finished with a total output of 30.46 million metric tons, while the second corn crop, that is about to finish harvest, is still estimated at 67.25 million metric tons. In the meantime, the total soybean production in the country was 114 million metric tons.
For wheat, there is an estimated production of 5.19 million metric tons, but there is still a lot to be harvested. For cotton, a harvest is near the end with an estimate of 1.53 million metric tons of cotton plume and 2.3 million metric tons of cotton core. In the season, 12.33 million metric tons of rice were produced.
The planting of soybeans and corn in some key regions of Brazil was expected to start this week, but it did not happen. There is lack of rain in the states of Mato Grosso, Paraná, and Mato Grosso do Sul. Some analysts say that is too early to be alarmed, but Somar Mereologia forecasts scarce rains in the coming days of September.
After abundant rains over the weekend, nearly three percent of the total surface for the grain agriculture in the season, or 2.4 million acres, could not be used in the next season in Argentina, according to the Buenos Aires Cereal Exchange. Experts at the Cereal Exchange do not eliminate the possibility that more acres are cut. In just ten days, there was more rain volume than expected for the month of September in key producing provinces of Buenos Aires, Santa Fe, La Pampa, and Entre Rios.
The Rosario Board of Trade released data that foresses that precipitations of 1.77 inches to 1.9 inches could affect the provinces of Santa Fe in Argentina as it prepares to plant corn. If this volume of rain really falls, experts say that will be impossible to plant corn in September and would delay also the planting of soybeans. The planting will be limited in the province of Buenos Aires and La Pampa because they are previously affected by floods.
The United States has requested Argentina to set a minimum biodiesel price after the North American country had imposed duties of up to 64.17 percent for the imports of Argentinian biodiesel. The government of Argentina seeks a quick solution for the problem and avoid new restrictions. For the National Biodiesel Guard, the group behind the denounce before the U.S. Commerce Department, Argentina does dumping by having different export taxes on biodiesel (0.13 percent), soybean oil (27 percent), and the soybean grain (30 percent), benefiting its biodiesel processing. A possibility indicated by unnamed sources is to have quotas for Argentina with lower duties.
The European Union decided to anticipate a decision about the duties on the imports of biodiesel from Argentina and lowered to a rate of 24.8 percent. The bloc has also set a timeline to lower the duties to a range between 4.5 percent and 10 percent. The new duties are expected to be valid by September 29.
The exports of the grain and cereals complex reached a value of US$ 12.4 billion in Argentina in the first half of the year, according to official data. The volume exported in the period reached 22 million metric tons, which a fall of 12 percent compared to 2016 when 25.3 million metric tons were shipped.
In the meantime, beef exports have risen 6.8 percent to US$ 1.3 billion. In terms of volume, there was a hike of 24 percent to 168,000 tons. The number is expected to grow a lot more in the coming months because has open its market of frozen beef for Argentina.
Agroconsult has released a new projection this Tuesday (09.05) that forecasts a reduction of output for both soybeans and corn. The total soybean surface would rise to 86.4 million acres (3 percent from last year), but as the yields would drop, the total output would fall to 111.1 million metric tons (4 percent less).
The summer corn crop would also shrink. The first of the two crops planted in a year in Brazil would be cut by 14 percent and would reach a volume of 26.1 million metric tons.
Meteorologists in Brazil see a high possibility that a stronger La Niña phenomenon would be seen in the coming months in Brazil. The country prepares for planting after fallowing in the Center-Western states, such as Mato Grosso, Mato Grosso do Sul, and Goiás, but rains would affect planting works in the southern states such as Parana and Rio Grande do Sul, delaying the works. Some experts say that if planting delays from the early planting in Parana, a significant number of Asian Rust cases would be seen.